DCM to expand and separate retail business

DCM Shriram Consolidated (DSCL) has planned to separate its rural retail business Hariyali Kisaan Bazaar into a subsidiary. The company plans to expand the number of outlets to 200-250 in 12-15 months from 65 at present and then get listed in the stock market.

The company officials have said that the expansion would require approximately Rs. 150-180 crore. This sum would be raised by internal accruals of the company. The board of the company has asked for permission of the shareholders to separate the company. DSCL has retained Rabobank to prepare the business model and is currently running pilot projects with Pantaloon Retail’s Big Bazaar, RPG Retail’s Spencer’s and Subhiksha.